When do I need to pay income tax? (UK)?

Question

I am currently in full time employment therefore I pay income tax and NI through work. However, I will soon be selling my products on ebay. I will not be paying myself a wage or drawing any money from my business for the start as I will be putting all profit back into the business. How would this work with regard to paying income tax and NI?

Answer 1

If this is a business you need to register with HMRC within 3 months of commencment. You would pay Income Tax on any profits, therefore if all the income was going back into the business during the start up period there would be no tax owed. You would still have to provide HMRC with trading detials via a self assessment Tax return every April

Answer 2

You will need to register with HMRC if you're doing this as a business; you'll pay income tax on your Ebay earnings, but you'll be exempt from any additional national insurance contributions as long as you inform them when you start - they'll send you a certificate which gives you exemption for three years at a time.

Answer 3

You will have to fill in an annual Tax Return. Self employed earnings have three dates of payment for established businesses. 31st January, first payment on account (half of last year's tax bill), 31st July, second payment on account (half of last year's tax bill), 31st January, any balance owing from when Tax Return processed, together with first payment on account for next year.

The Tax Return is issued on 6th April each year.

Answer 4

when u have an income